The City of Brownwood moved forward with steps toward city improvement projects by passing a resolution Tuesday directing the publication of the city’s Notice of Intention to issue Combination Tax and Revenue Certificates of Obligations not to exceed $10.75 million.
Brownwood City Manager Bobby Rountree explained in a March 23rd memo that the City intends to fund various city improvements through the issuance of this Certificate of Obligation. This notice must be published twice before passing an ordinance authorizing the sale of the bonds. The notice will be published in the local newspaper on April 11th & 18th in the legal section of the classified ads.
Some of the improvement projects being considered by the council are:
- New Central Firestation $3.55 million
- Street Reconstruction $4.7 million
- Completing Phase III of the Bert V. Massey Sports Complex – Soccer Fields $2.2 million
Other projects to be considered if any excess funds are available include purchasing and acquiring land which would benefit the city, improvements to the waste water treatment plant, demolition of structures (such as the current fire station, if new station is approved), and acquisition of right of ways and/or relocation of utility lines.
City Finance Director Walter Middleton explained that debt service obligations from 1992 bonds will be paid off in September of this year opening the opportunity to plan city improvements without adding to the City’s budget.
“These 1992 bonds will be paying off in September of this year, so with the revenue stream already in the budget, we (the city) have been looking at issuing certificates of obligation to do various improvements in the city and issue these bonds using that revenue stream without having to go up on any rates, fees or taxes,” Middleton said.
George Williford of First Southwest Company, the city’s financial advisor, is preparing a Preliminary Official Statement (POS) which will be submitted to a rating agency and bond insurance company then a ratings call and subsequent rating of the bonds will be issued. Based on these ratings, the council will determine if bond insurance is something the council wants to pursue. A one reading ordinance will then be presented to the council during the May 22nd meeting to authorize issuance and approve the sale of the bonds. After council action, all of the documents will be submitted to the Attorney General’s office for approval, which takes approximately 3 weeks. At that point, the city can close on the bonds and sell them.
The council’s action to authorize the issuance and sale of these bonds is slated for the May 22, 2012 council meeting. Closing and receipt of funding is expected to be June 19th, according to the timeline prepared by First Southwest Company.